Which Move to the Middle: Industry Consortia or Private Exchanges?

Which Move to the Middle: Industry Consortia or Private Exchanges?

Susan A. Sherer, Yuliang Yao
Copyright: © 2006 |Pages: 16
DOI: 10.4018/jebr.2006040102
OnDemand:
(Individual Articles)
Available
$37.50
Current Special Offers
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

The move-to-the-middle hypothesis has been used to predict firm structures, suggesting that firms will move to more outsourcing but from a reduced set of stable partners (Clemons et al., 1993). Extending this hypothesis to predict electronic marketplace structures, we suggest that both industry consortia and private exchanges represent a move to the middle by reducing transaction costs and risks. In industries with highly interdependent relationships, industry consortia may be more successful because of their reduction of coordination costs without corresponding increases in transaction risk. Within an industry, companies may choose to participate in both types of marketplaces. Product characteristics moderate the relationships between the transactions costs and risk and the type of marketplace.

Complete Article List

Search this Journal:
Reset
Volume 20: 1 Issue (2024)
Volume 19: 1 Issue (2023)
Volume 18: 4 Issues (2022): 2 Released, 2 Forthcoming
Volume 17: 4 Issues (2021)
Volume 16: 4 Issues (2020)
Volume 15: 4 Issues (2019)
Volume 14: 4 Issues (2018)
Volume 13: 4 Issues (2017)
Volume 12: 4 Issues (2016)
Volume 11: 4 Issues (2015)
Volume 10: 4 Issues (2014)
Volume 9: 4 Issues (2013)
Volume 8: 4 Issues (2012)
Volume 7: 4 Issues (2011)
Volume 6: 4 Issues (2010)
Volume 5: 4 Issues (2009)
Volume 4: 4 Issues (2008)
Volume 3: 4 Issues (2007)
Volume 2: 4 Issues (2006)
Volume 1: 4 Issues (2005)
View Complete Journal Contents Listing